Demystifying compliance for MSPs: Action points from Wes Spencer

In this SuperSummit Virtual ‘24 session, Wes Spencer - Co-founder of Empath, shared valuable insights on the importance of compliance, the changing landscape, and strategies for successful compliance management. This session was filled with practical advice and recommendations for MSPs to navigate the complex world of compliance.

Understanding compliance: More than just legal requirements

Compliance regulation goes beyond meeting legal requirements; it's about building trust with clients and protecting sensitive information. Wes emphasizes that compliance is not an option but a necessity. In the tech industry, where privacy and security are paramount, businesses must prioritize data hygiene and implement robust security measures.

Action Points for Successful Compliance Management

1. Understanding industry-specific regulations

Every industry has its specific regulations, and it's crucial to stay updated and comply accordingly. Wes advises MSPs to thoroughly understand the regulations that apply to their industry. This knowledge will enable them to develop tailored compliance strategies and ensure they meet all requirements.

2. Implementing robust security measures

A strong security framework is essential for compliance. Encryption, access controls, and regular vulnerability assessments are key components of such a framework. Wes stresses that security is not a one-time thing but an ongoing process. MSPs must implement and maintain these security measures to protect sensitive data effectively.

3. Having a well-defined incident response plan

In the event of a data breach or security incident, having a clear roadmap on how to handle the situation is crucial. A well-defined incident response plan minimizes the impact of such incidents and helps regain the trust of clients. Wes underlines that preparation is key and encourages MSPs to create and test their incident response plans.

4. Prioritizing training and awareness

Compliance is a team effort, and employees play a crucial role. Wes highlights the importance of educating employees about compliance regulations, security best practices, and data hygiene. By fostering a culture of training and awareness, MSPs can ensure that their workforce is equipped to handle compliance-related challenges effectively.

5. Going beyond the minimum requirements

Compliance sets the floor, but MSPs should strive to go beyond the minimum requirements. Wes suggests that MSPs should educate their clients about the need to raise expectations and do more in certain areas. By exceeding the minimum requirements, MSPs can build a reputation as trusted compliance partners.

Challenges and opportunities

During the session, Wes also shed light on some of the challenges and opportunities in the MSP industry's compliance landscape. 

1. Changing landscape and increasing mandates

Compliance in the MSP industry has evolved significantly over the years. With an increasing number of vendors and higher mandates, MSPs are now under closer scrutiny from federal regulators. Wes emphasizes the need to adapt to these changes and stay updated with new legislation.

2. Learning from others

Wes quotes Ken Schwam, saying, "A smart person learns from his mistakes, but a truly wise person learns from the mistakes of others." MSPs should not try to pioneer compliance on their own. Instead, they should seek advice and learn from fellow professionals in the industry. Sharing experiences and best practices can be invaluable in navigating the compliance landscape successfully.

3. Compliance as the foundation for success

Compliance is not just a box to check; it is a crucial aspect of building trust with clients and ensuring data hygiene. MSPs must establish compliance as a foundational element of their business. By understanding specific regulations, implementing robust security measures, having an incident response plan, and promoting training and awareness, MSPs can thrive in the digital age.

Final thoughts

Compliance in the MSP industry is not to be taken lightly. It is a critical requirement for building trust with clients, protecting sensitive information, and ensuring data hygiene. Wes Spencer's session provided valuable insights on understanding industry-specific regulations, implementing robust security measures, having a well-defined incident response plan, prioritizing training and awareness, and going beyond the minimum requirements.

Compliance is a continuous journey, and MSPs must stay updated with new legislation and industry best practices. By establishing compliance as a foundational element and exceeding client expectations, MSPs can position themselves as trusted partners for their clients' compliance needs.

Don’t miss out on valuable insights and action points from the rest of the sessions at SuperSummit Virtual ‘24 — watch the recording to catch up on key highlights!